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Xiang Manufacturing Company manufactures blue rugs using wool and dye as direct materials. One rug is budgeted to use 40 skeins of wool at a cost of $4 per skein and 0.75 gallons of dye at a cost of $8 per gallon. All other materials are indirect. At the beginning of the year, Xiang has an inventory of 462,000 skeins of wool at a cost of $1,062,600 and 4,200 gallons of dye at a cost of $25,200. Target ending inventory of wool and dye is zero. Xiang uses the FIFO inventory cost flow method. Requirement 1. Prepare a direct material usage budget in both units and dollars. Begin with the physical units portion, then prepare the cost budget portion of the direct material usage budget. Direct Material Usage Budget in Quantity and Dollars Material Physical Units Budget Direct materials required for Blue rugs Wool skeins Dye gal i (Click the icon to view the additional information.) It budgets 0.25 machine-hours to dye each skein in the dyeing process. There is no direct manufacturing labor cost for dyeing. Xiang budgets 55 direct manufacturing labor-hours to weave a rug at a budgeted rate of $15 per hour. (Click the icon to view the budgeted overhead costs.) Read the requirements. Total

Xiang Manufacturing Company manufactures blue rugs using wool and dye as direct materials. One rug is budgeted to use 40 skeins of wool at a cost of $4 per skein and 0.75 gallons of dye at a coat of $8 per gallon. Al cther materials aro indirect. At the beginning of the year, Xiang has an imentory of 462,000 skeins of wool at a cost of $1,062,600 and 4,200 gallons of dye at a cost of $25,200. Target ending inventory of wool and dye is zero. Xiang uses the Fifo inventory cost flow method (i) (Click the icon to view the additional information.) It budgets 0.25 machine-hours to dyo each skein in the dyeing process. Thero a no drect manufacturing labor coat for dyeing. Xiang budgets 55 direct manutacturing labor hours to weave a rug at a budgeted rale of \$15 per hour. (Click the icon to view the budgethd overhead couta.) Read the toouirements Requirement 1. Prepare a drect material usage budpet in both units and dolare. Begin with the physical units portion, then prepare the cout budget portion of the direct material uaage budget. Direct Material Usage Budget in Quantity and Dollars Xiang Manufacturing Company manufactures blue rugs using wool and dye as direct materials. One rug is budgeted to use 40 skeins of wool at a cost of $4 per skein and 0.75 gallons of dye at a coat of $8 per gallon. Al cther materials aro indirect. At the beginning of the year, Xiang has an imentory of 462,000 skeins of wool at a cost of $1,062,600 and 4,200 gallons of dye at a cost of $25,200. Target ending inventory of wool and dye is zero. Xiang uses the Fifo inventory cost flow method (i) (Click the icon to view the additional information.) It budgets 0.25 machine-hours to dyo each skein in the dyeing process. Thero a no drect manufacturing labor coat for dyeing. Xiang budgets 55 direct manutacturing labor hours to weave a rug at a budgeted rale of \$15 per hour. (Click the icon to view the budgethd overhead couta.) Read the toouirements Requirement 1. Prepare a drect material usage budpet in both units and dolare. Begin with the physical units portion, then prepare the cout budget portion of the direct material uaage budget. Direct Material Usage Budget in Quantity and Dollars

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